NSW extends fracking ban

The NSW government has for a second time extended a temporary ban on the use of hydraulic fracturing – or fracking – by the coal seam gas industry to allow more time for an independent review into the technique.

The moratorium, due to end on December 31, had been deferred until April, NSW Minister for Resources and Energy Chris Hartcher said on Friday.

Fracking has been banned in France, Quebec and some US states and NSW’s decision is the latest regulatory handicap for the fast-growing coal seam gas industry in eastern Australia.

This week a Senate committee published proposals that would severely hamper the $60 billion sector should they be implemented.

The measures include halting approvals for coal seam gas projects in the Great Artesian Basin and in the Namoi catchment pending further research and the isolation and treatment of fracking fluids.

Fracking involves injecting a solution of water, sand and chemicals into a well to force cracks in the underground coal seam to allow gas to flow. Environmental groups and farmers are concerned about the effects on the water supply.

Origin Energy
managing director
Grant King
is among industry executives who have explained that none of the chemicals used in the process are different from those found in toiletries and food. The reassurances have failed to quell fears about water contamination and damage to underground aquifers.

Dart Energy
, one of the coal seam gas explorers in NSW, signalled it was unconcerned about the extended moratorium and that other technologies could achieve similar or better results.

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“Dart has no plans to frac anyway," a spokesman said. “Our preferred position is horizontal well technology, which precludes the need for fracking."

Santos
,
Metgasco
and
Red Sky Energy
are also involved in coal seam gas exploration in NSW.
AGL Energy
is the only producer.

Mr Hartcher said that extending the moratorium would allow for the review and strengthening of standards for fracking in NSW, and for the development of technical guidelines.

The Queensland government has outlawed the use of carcinogenic BTEX chemicals in the fracking process.

“We are working very carefully to strike the right balance between resource development, continued agricultural production and environmental protection while meeting the state’s future energy needs," Mr Hartcher said.